While the rate of growth at credit unions is twice that of smallbanks, large bank lending to small businesses has beenstagnant.
|That's according to the Texas Credit Union League, which citeddata from the Biz2Credit Small Business Lending Index for February.
|Over the past year, the largest institutions in the U.S. thatreceived taxpayer assistance specifically to lend to small businessonly approve an average of 10% of the requests they receive, theleague said. Credit unions approve more than 50% of their loanrequests from small businesses, the data showed.
|The league said from December 2007 through December 2011,banks scaled back lending to small businesses by nearly 15%while credit unions increased lending by 45%.
|Dick Ensweiler, president/CEO of the Texas league, said creditunions in the state are urging Republican Sens. Kay BaileyHutchinson and John Cornyn to vote for the Small Business Lending Enhancement Act.
|The industry continues to push for a provision that wouldincrease the member business lending cap from 12.25% of assets to 27.5%.
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